Crypto Market Plunges as Tariffs and Economic Fears Weigh on Investors
The crypto market saw a sharp downturn with major liquidations, dragging the entire sector lower.
The main reason behind this could be mounting investor concerns over economic indicators and new tariff policies.
Bitcoin tumbled 10% to $83,204, while Ethereum plunged 14.7% to $2,082, marking its lowest level since November 2023. Broader market indices, including the GMCI 30, reflected the downturn, with a 14% drop.
Analysts point to disappointing U.S. economic data, including a weaker-than-expected ISM PMI and a GDP growth forecast of -2.8% for Q1, fueling fears of a recession.
READ MORE: David Sacks Sells All Crypto Before Trump’s Reserve Announcement
Adding to market anxiety, President Trump announced a 25% tariff on Canadian and Mexican imports, alongside a tariff hike on Chinese goods. Analysts suggest this policy shift erased gains from Trump’s recent crypto reserve announcement, further dampening sentiment. Some also warn that potential retaliatory measures from affected nations could deepen economic uncertainty.
Investor caution is evident in ETF movements, with U.S. spot Bitcoin funds seeing net outflows of $74.19 million on Monday, reversing gains from the previous session. Ethereum ETFs continued their downward streak, recording outflows for the eighth consecutive day. Market indicators, such as high funding rates and extreme greed levels, suggest a cooling-off period may be underway.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
